Defining Objectives

The objectives paragraphs should clearly articulate the charity’s purposes, as defined in its governing document. These purposes are the foundation of the charity’s work and should align with its mission to provide public benefit. In England and Wales, it is essential for trustees to explicitly state how these objectives meet the public benefit requirement. The Charity Commission’s guidance emphasises that trustees should always have regard to the public benefit principles when planning and reporting activities.

Explaining Activities

Once the objectives are clearly defined, the report should detail the charity’s main activities undertaken during the year to achieve these objectives. This isn’t just about listing actions but explaining how these activities contribute to the charity’s purposes and impact the beneficiaries. For instance, if a charity’s objective is to reduce food poverty, the activities might include operating food banks, running nutritional education programs, and partnering with local suppliers to distribute surplus food.

Demonstrating Transparency To Build Trust Among All Stakeholders

The Objectives and Activities section is more than a compliance exercise; it’s an opportunity to demonstrate the charity’s commitment to its mission and effectiveness in creating positive change. A transparent and compelling narrative that explains exactly how the organisation operates builds trust with donors, beneficiaries, and regulators, confirming that resources are being used in alignment with stated goals.

Top Tips for Trustees

• Be Specific and Measurable: When outlining objectives, use clear and specific language. Where possible, link objectives to measurable outcomes to provide a tangible sense of progress and impact.

• Tell a Story: Use real-life examples and case studies to illustrate how activities are making a difference. A compelling narrative can engage readers and demonstrate the charity’s value in a relatable way.

• Avoid Jargon: Eliminate terminology that may not be understood by all of your stakeholders. Remember the readers of this report are looking for confirmation that their funds, or time, are being used in an impactful way, without necessarily being able to interpret the financial statements as a whole.

By clearly outlining objectives and linking them to activities, trustees not only fulfil their reporting obligations under FRS 102 SORP but also foster a deeper understanding of the charity’s work among a wide range of stakeholders.

This clarity can inspire continued support and confidence in the organisation’s mission and be a key element of future bids for funding.